hyWHY AMUL ENTERED THE PIZZA MARKET?
An unlikely entrant has stirred the pizza market in India. Indian company Amul, well known for its milk products, has introduced a pizza for 20 rupees (41 US cents), or one-third that charged by competitors.
Amul is one of the largest food cooperatives in the world and carries immense financial and advertising clout. Its parent company, the Gujarat Cooperative Milk Marketing Federation (GCMMF), turned around 25 billion rupees last year. And even though they may not admit it, competitors have started tightening their belt, in different ways.
But what prompted Amul to enter a new territory, at a time when the field is flooded with new entrants, many of them multinationals?
Industry analysts point to two reasons. The main one is the growing acceptance of pizza by the Indian customers' palate. Pizza has become popular in all major cities and towns. According to industry sources, it now forms almost 50 percent of the fast-food business.
Pizza joints are as ubiquitous as outlets for vada pav and pav bhaji, two local delicacies. That the pizza has finally become a part of the Indian eating experience is confirmed by the fact that several railway stations have set up special stalls to hawk various brands of pizza. Until now, the Indian railway traveler had to make do with stale tea and rancid sandwiches.
The continued presence of Domino's and Pizza Hut is attracting other multinationals. After delivering turnips like the Pillsbury Cooker Cake mix, General Mills India (formerly known as Pillsbury India) has now made a conscious decision to focus only on those products that can clearly deliver profitability. According to General Mills India president Tanmay Ganguly, in line with this broad strategy, the company will make forays into categories where consumer habits have already been created. And that includes the pizza market.
Local outfits, too, are making their presence felt. The south India-based Pizza Corner is... [continues]
An unlikely entrant has stirred the pizza market in India. Indian company Amul, well known for its milk products, has introduced a pizza for 20 rupees (41 US cents), or one-third that charged by competitors.
Amul is one of the largest food cooperatives in the world and carries immense financial and advertising clout. Its parent company, the Gujarat Cooperative Milk Marketing Federation (GCMMF), turned around 25 billion rupees last year. And even though they may not admit it, competitors have started tightening their belt, in different ways.
But what prompted Amul to enter a new territory, at a time when the field is flooded with new entrants, many of them multinationals?
Industry analysts point to two reasons. The main one is the growing acceptance of pizza by the Indian customers' palate. Pizza has become popular in all major cities and towns. According to industry sources, it now forms almost 50 percent of the fast-food business.
Pizza joints are as ubiquitous as outlets for vada pav and pav bhaji, two local delicacies. That the pizza has finally become a part of the Indian eating experience is confirmed by the fact that several railway stations have set up special stalls to hawk various brands of pizza. Until now, the Indian railway traveler had to make do with stale tea and rancid sandwiches.
The continued presence of Domino's and Pizza Hut is attracting other multinationals. After delivering turnips like the Pillsbury Cooker Cake mix, General Mills India (formerly known as Pillsbury India) has now made a conscious decision to focus only on those products that can clearly deliver profitability. According to General Mills India president Tanmay Ganguly, in line with this broad strategy, the company will make forays into categories where consumer habits have already been created. And that includes the pizza market.
Local outfits, too, are making their presence felt. The south India-based Pizza Corner is... [continues]
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